| An SI Board Since January 1999 |
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GNET |
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GNET has a business plan perceived by Wall Street analysts, and the investing public, as a sound strategy for being profitable. Witness GNET's strength relative to other Internet carriers in the aftermath of the Brazilian crisis last week. That's always a good place to start in making Go2Net a "Go To Stock". For potential investors in GNET, there are global factors to consider that will boost GNET's business in 1999:
1) more widespread ownership of computers with faster processors and modems as bargain-basement prices for these units go down by an estimated factor of three in 1999 alone, producing more hits on GNET and other Internet sites per unit time. And let's not forget the year 2000 bug, a once-in-history event. How many businesses and individuals will rationalize upgrading in 1999 because of the Y2K bug? With prices so low, why not? Result: more GNET hits per unit time = $$$
2) an increased presence of computers, and Internet transactions, in all households. This is especially true given the availability of cheap, but Internet functional, second-hand units as more experienced users and businesses rush to upgrade. It is estimated that virtually every household in the USA will have at least one computer by the
year 2003; in 1999 we will see major progress in this direction as prices for new and used computers go down. Given recent explosive growth in Internet stock values, which the Wall Street Journal and other major publications have given national exposure, it is likely that many who do not currently own computers will buy a computer, even if it's a used model for $100-$150, get on the Internet, and find out for themselves what all the excitement is about. Any of these new users who later choose to upgrade to a faster computer can then do so for a relatively small investment. Senior citizens, many of whom are on fixed incomes, probably constitute a large part of the "new user" sector; many are intimidated by computers and their cost. However, bargains on new and used computers will abound this year. Result: more GNET hits per unit time = $$$
3) finally, and perhaps most importantly, broadband cable-fiber optic Internet carriers (like MediaOne, my Internet carrier), which can surf the Internet 50 times faster than a 28.8 kBps phone modem, are continuously increasing their customer pools. No more waiting for an hour to get online when you sign up with one of these high-speed Internet carriers! Result: more GNET hits per unit time = $$$
I see an analogy between the Internet today and black-and-white TV in the early 50's, and color TV in the early 60's: in all cases there is a widespread, growing presence that is poised on the brink of prevalence in our entire society with no turning back. Short-term market volatility aside, it's hard not be bullish under such circumstances.
Go Internet - Go long - Go GNET!
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